Since 2021, software has averaged 38% of jumbo ($1B+) private credit issuance vs. 18% for the broader direct lending market.
authors
Christopher Bole
Christopher Bole
Vice President, Financial Writer
Software % of private credit issuance (by $ volume)
Chart showing the % of software issuance by market segment. Software loans have comprised a larger share of new issuance since 2021.
Source: KBRA DLD, as of February 28, 2026.
  • As markets assess the implications of agentic AI tools on software companies, private credit has come under scrutiny due to its substantial exposure to the sector.
  • Software represents a meaningful portion of private credit issuance, yet activity has been particularly concentrated in jumbo loans (transactions exceeding $1 billion).
  • Since 2021, software has averaged approximately 38% of jumbo private credit issuance, compared to 18% across the broader direct lending market.1 Of particular concern are the large software loans originated at lofty valuations in 2021-2022.
  • Many private credit concerns stem from practices in the most competitive segments of the market, where large managers dominate and dynamics differ sharply from less crowded areas.
contributing authors
Christopher Bole
Christopher Bole
Vice President, Financial Writer
footnotes + disclosures
  1. KBRA DLD, as of February 28, 2026.

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